India set for Higher-Ed boom: 560,000 students, $113 bn forex saved by 2040

India is fast emerging as the world's most attractive market for global universities, with foreign institutions accelerating their India-entry plans

India has become the world’s most quantifiable higher-education opportunity. A demographic engine of 155 million college-age individuals, a target to push GER from current levels toward 50% by 2035, and soaring outbound mobility driven by limited domestic capacity and rising global barriers together create a demand gap unmatched globally. Education loan disbursals have surged to Rs 2,003 billion, while traditional study destinations tighten visas, amplifying the pressure. 

 

According to Deloitte India and Knight Frank’s new study, 18 global universities already hold approvals, three campuses are operational, and by 2040, foreign institutions in India could serve 560,000 students, generate $113 billion in forex savings, and create 19 million sq ft of new, specialised education-linked real estate demand.

 

 

India Emerges as the World’s Fastest-Growing Higher-Education Market

 

The joint report, Global Universities Eye India Opportunity: The Next Big Leap in Higher Education, unveiled on Wednesday, revealed that India today boasts the largest higher-education-age cohort globally—155 million people poised to reach 165 million by 2030. Yet, capacity continues to lag demand, pushing lakhs of students abroad annually despite rising costs and sharply restrictive immigration policies across the US, UK, Canada and Australia.

 

This gap—combined with affordability, demographics, and policy reforms—forms a compelling case for global universities to build long-term, self-sustaining operations in India.

 

Reforms Unlock India for Global Universities

 

Transformational regulatory changes under NEP 2020, along with new frameworks from the UGC and IFSCA, have opened the door for foreign universities to operate in India through:

• Offshore campuses
• Joint ventures
• Transnational education models

 

These reforms are supported by incentives such as taxation benefits, relaxed operating norms, and proposed single-window clearances.

 

Already, 18 foreign universities have received in-principle or final approvals, and three campuses are functional—marking strong early momentum.

 

Sahil Gupta, Partner at Deloitte India, said the opportunity is “once in a generation,” adding:

 

“India’s demographic scale and the policy reforms introduced by UGC and IFSCA have created a unique, long-term opportunity for global universities. India offers unmatched cost advantages, expanding R&D ecosystems, and strong talent pipelines.”

 

By 2040: Massive Economic Value, Real Estate Demand

 

According to the Deloitte–Knight Frank model, foreign universities operating in India could by 2040:

 

Serve 560,000 students across undergraduate, postgraduate and research programmes

Generate $113 billion in forex savings, reducing India’s education outflow bill

Create 19 million sq ft of demand for premium, education-linked real estate

Catalyse innovation corridors and research clusters in top Indian cities

 

For the real estate sector—especially investors eyeing institutional-grade assets—this represents a new, long-duration demand driver.

 

Which Cities Are Ready? Delhi NCR Leads; Bengaluru, Mumbai Follow

 

The study offers a first-of-its-kind City Readiness Index assessing 40 Indian cities for suitability as hubs for foreign higher education institutions (FHEIs).

 

Top 3 Most Prepared Cities

 

Delhi NCR

Bengaluru

Mumbai

 

These cities score high on:

 

• Research ecosystems
• Access to global talent
• Infrastructure and connectivity
• Industry-academia collaborations

 

Interestingly, Tier-II cities like Chandigarh and Kochi also demonstrate “mid-scale readiness,” suggesting the long-term potential for a distributed higher-education network.

 

Shishir Baijal, Chairman & MD of Knight Frank India, noted:

 

“With 155 million young individuals and strong economic momentum, India offers unmatched scale and long-term demand certainty. Foreign universities will elevate academic quality, deepen research collaboration and unlock significant real estate opportunities.”

 

Why Global Universities Are Looking Beyond the West

 

The study argues that a perfect storm is pushing institutions toward India:

 

• Geopolitical instability affecting traditional education hubs
• Restrictive post-study visa rules in the US, UK, Canada and Australia
• Rising costs for international students
• Pressure on universities to diversify geographically
• India's massive unmet domestic demand

 

In this context, India stands out as the only market combining scale, stability, affordability and reform-driven openness. 

What to watch out for in 2026

 

India’s scale advantage:

India hosts 155 million individuals in the higher-education age bracket, the world’s largest cohort — expected to rise to 165 million by 2030. No other country offers this level of demand certainty.

 

Bridging India’s supply gap:

India targets a 50% Gross Enrolment Ratio (GER) by 2035. Current capacity falls significantly short, pushing hundreds of thousands of students abroad each year, despite tightening student visa policies in the US, UK, Canada and Australia.

 

Policy environment opening the gates:

NEP 2020, along with new UGC and IFSCA frameworks, allows foreign universities to set up offshore campuses, joint ventures and independent operations — with tax incentives, repatriation freedom and single-window approval mechanisms under consideration.

 

Together, these factors are triggering the largest wave of global university interest India has ever seen.

 

2025: The Year Global Universities Turned Toward India

 

The policy and demographic momentum of 2025 has already translated into action:

 

18 global universities have secured in-principle or final approvals.

 

Three have already started operations:

 

Deakin University (GIFT City)

 

University of Wollongong (GIFT City)

 

University of Southampton (Gurugram)